Are Anguilla bearer shares permitted?

One of the most frequently asked questions by businesses when owning a company incorporated in Anguilla is “Are Anguilla bearer shares permitted?”. In Anguilla, International Business Companies (IBCs) can issue Anguilla bearer shares under the IBC ACT (R. S. A CI20). Anguilla bearer shares are subject to custodial services. The IBC Securities Depository Regulations provide that bearer shares are considered void if the shares are held by any person other than the legal custodian. The AML/CFT Regulations and Rules also mandate that the depository identify the beneficial owner of Anguilla bearer shares being held and maintain a register with the names and addresses of the beneficial owners of the shares.

In the case that a company may issue bearer shares, the owner of that company is the legal holder of the shares. Anguilla bearer shares are considered legal to use by individuals who wish to maintain privacy and anonymity, as long as they are not likely to be misused by those with malicious motives due to the ambiguity of them. As a result, the Anguilla Government is considering banning the issue of bearer warrants and requiring existing bearer stockholders to convert their bearer shares into common shares. This will increase transparency for companies in Anguilla and minimize the increasing illegal activities.